As the U.S. concluded yet another enthralling celebration of Black History month we also paused to acknowledge the large black primary electorate in South Carolina turn out to exercise their hard-fought political rights, and exhale ever so slightly that Dr. Martin Luther King Jr. would feel a sense of pride in how far we as a nation have come. Yet for all of those accomplishments we’re once again confronted with the ugly spectacle of Blacks in America and their struggles for political and civil equality. However, as pointed as these discussions are (even in 21st century America) the issue of economic equality continues to escape the public discourse.

Considering that the voting rights that were granted to blacks were earned as far back as 1870 via the 14th & 15th Amendments to the Constitution which followed Emancipation, and the Voting Rights Act of 1965 which followed the Civil Rights Movement merely reinforced those rights it is sometimes baffling and of grave concern to many that fully fifty years later some among us are still fighting those Civil Rights battles of yesteryear. Over the decades while these civil rights issues were being gallantly fought for the economic plight of blacks across the U.S. has largely been ignored, resulting in the gap between the races widening instead of closing over the last few decades. Consequentially, the unemployment rate among blacks has historically trended at over twice the rate of whites (currently 8.8% for blacks vs 4.3% for whites in January). This disparity permeates through all segments of the educational strata and “suggests a race penalty [among] blacks at each level of education” according to The Atlantic.

In addition, the wealth gap is growing even more cavernous. According to the Urban Institute wealth among white households is over seven times higher than those of blacks (over $677,000 vs $95,000 in 2013). And the biggest root cause for this growing divide is firmly cemented in the housing market with blacks enjoying only a 43% home ownership rate, fully 26 percentage points below their white counterparts. These home ownership rates have not improved since 1983 despite decades of government policies supposedly promoting the same.

Other debilitating economic metrics that appear to get overlooked are the present value of lifetime earnings for whites currently standing at $500,000 more than that for blacks over the course of their working lives. This is primarily due to the disparity of income upon hiring, and subsequent promotional opportunities afforded to members of both races. Also (and as a direct consequence) retirement savings are nearly seven times lower for blacks; with blacks carrying over 25% more student loans.

As society begins its quadrennial review of the state of the Black Union (coinciding with the presidential electioneering activities) it’s important that we broaden the debate from merely black political disenfranchisement to the bigger issue of economic subjugation. Until the economic divide is addressed in serious and material ways then Blacks in 21st century America will continue to find that political freedom without commensurate economic liberties is only a half-won battle.

 

Keith Thompson is a Senior Economist in Transfer Pricing with an agency within the US Department of the Treasury, and an adjunct Economics professor with Ramapo College of New Jersey.